Stocks rise for 3rd day amid Kamal’s brainstorming meeting

Staff Correspondent | Published at 12:00am on September 17, 2019

Dhaka stocks increased for the third day on Monday as investors continued buying shares amid the finance minister AHM Mustafa Kamal’s meeting with the financial market regulators and stakeholders to revive the investors’ confidence in the market.

DSEX, the prime index of the Dhaka Stock Exchange, advanced by 0.35 per cent, or 17.49 points, to close at 4,959.73 points on Monday.

The DSEX gained 27 points in last three sessions. But the market remained bearish in recent months.

The market opened positive on Monday and maintained the buoyancy until the end of the session as investors continued buying shares amid the finance minister’s meeting on the day, market operators said.

They said a plunge at the market in recent months dragged the key index to a 32-month low on September 11 that prompted Kamal to hold the meeting with the regulators and stakeholders.

The meeting discussed the continued fall in share prices and the ways to improve the situation.

Market operators said a section of investors hoped that the finance minister might find ways to instil confidence in investors.

EBL Securities in its daily market commentary said, ‘The finance minister’s talks with the capital market stakeholders propelled optimistic investors’ participation, which caused the session to settle in the green zone. Investors showed appetite for taking position amid good stocks’ lucrative prices due to the recent price corrections.’

The average share prices of telecommunication sector advanced by 0.9 per cent, non-bank financial institution 0.5 per cent, textile 0.4 per cent and bank 0.2 per cent on Monday.

A surge in share prices of British American Tobacco, Grameenphone, BRAC Bank and Investment Corporation of Bangladesh contributed to the market remaining afloat.

But, many investors remained worried about the persistent liquidity crisis in the financial market, market operators said.

They said the government’s recent decision to divert funds from state-owned enterprises to the national exchequer might worsen the situation.

Therefore, investors’ participation was poor.

Turnover on the bourse inched up to Tk 388.80 crore on Monday from Tk 317.08 crore in the previous session.

The average share prices of insurance, energy and engineering sectors dropped on the day.

The share prices of two Monno Group companies, Monno Ceramics and Monno Jute Stafflers, which are known as ‘gambling items’ among investors made ‘dramatic’ movements on the day, said market operators.

Like the previous trading session, the share prices of the companies hit rock bottom within minutes of trading on Monday with no buyers following the Bangladesh Securities Exchange Commission’s move to freeze shares of one of its director over alleged share price manipulation, they said.

But, in the closing hour of trading the companies’ shares worth around Tk 40 crore were traded with the prices hitting the upper ceiling with no sellers, they said.

The BSEC on September 12 also sent Monno Ceramics to the spot market with effect from Sunday because of an abnormal rise in its share prices.

DS30, the blue-chip index of the DSE, gained 0.96 per cent, or 16.81 points, to close at 1,755.74 points.

DSE Shariah index DSES added 0.11 per cent, or 1.36 points, to close at 1,155.61 points.

Monno Jute Stafflers led the turnover chart with its shares worth Tk 33.46 crore changing hands.

National Tubes, Stylecraft, Monno Ceramics, Beacon Pharmaceuticals, Bangladesh Submarine Cable Company, JMI Syringe, British American Tobacco, Legacy Footwear and VFS Thread Dyeing were the other turnover leaders.

GQ Ball Pen Industries gained the most on the day with a 9.8-per cent increase in its share prices while SEML FBLSL Growth Fund was the worst loser, shedding 9.30 per cent.